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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Skip_S who wrote (5058)	1/26/1999 11:08:00 AM
From: jmt	Read Replies (1) \| Respond to of 6931

Skip: Thank you for your usual highly optimistic post. Hope you don't mind if I question a few of your conclusions. The company has been growing at 200% per year over the past 2 years and has a sustainable future growth rate over the next 3 to 5 years of 50% to 100% plus. You use the term "sustainable" as it is something that has been achieved and just needs sustained. Little has actually been achieved other than Frontier which will accelerate revenues, and the AT&T business has actually been lower. Possible, probable, but sustainable? Low Future P/E Ratio Looking at the history of dillution and missteps, the size of the company in regard to compete with the big boys if they play hardball, lack of "sustainable" positive earnings and reliance on one customer for a majority of revenues give this company the current PE. Once they can develop a better operating history they will deserve a higher PE. Interactive Telesis has sustainable high profit margins (60 to 70%). No offense intended, but this is absolute bullshit. They discuss high gross margins which is a result of their lack of ability to properly allocate costs to revenues. So everything is dumped into SG&A. So at the end of the day the "true" profits dissapear. Thanks for your post. It contained much positive and factual information. jmt